Goldman Predicts Brazil Will Win the 2014 World Cup

By RACHEL ABRAMS

May 28, 2014

The thousands of screaming soccer fans who root for their national teams at the World Cup every four years probably aren’t rooting for their local stock market.

But victorious nations can experience a boost after the world’s largest soccer tournament, at least temporarily, according to the latest report from Goldman Sachs on the economics of the World Cup.

In the report, Goldman says that the winning team typically scores an economic boost for its home country, where the stock market tends to outperform the global average by 3.5 percent in the month following a victory.

But those results are only temporary. Goldman said that the positive performance typically peters out after three months. In fact, winning nations will typically see their stock market underperform the rest of the world by 4 percent the year after a world cup victory, the report said.

A report by Goldman Sachs predicted that Brazil would win the World Cup.

Goldman Sachs

Goldman also predicted that Brazil, the host of this summer’s tournament, would be the winners.